Published DO 12 Sep/011 – Nº 28305
Law No. 18.795
ACCESS TO SOCIAL HOUSING
DECLARED OF NATIONAL INTEREST
The Senate and the House of Representatives of the Eastern Republic of Uruguay, meeting in General Assembly,
DECREE:
CHAPTER I
TAX BENEFITS FOR SOCIAL INTEREST HOUSING
Article 1. (National interest).- The improvement of the conditions of access to social interest housing, the latter being defined in accordance with Law No. 13.728 of December 17, 1968, its amendments and concordant provisions, is hereby declared to be of national interest.
Article 2. (Projects and activities promoted).- The following may access the benefits regime established in this law, as long as they are declared promoted by the Executive Branch:
A) Investment projects related to the construction, renovation, expansion or recycling of properties for social interest housing, both in the case where the aforementioned properties are intended for sale, as well as when they are intended for leasing or leasing with an option to buy. Included in this section are projects intended for the acquisition of social interest housing built, renovated, expanded or recycled under the present regulations for subsequent leasing and those developed by social funds and housing cooperatives in any of their modalities, as long as such housing complies with the general conditions established in this law.
B) Specific activities associated with improving the supply and demand conditions for social housing.
Article 3. (Objectives).- For the purposes of granting benefits, those projects and activities that meet any of the following conditions will be taken into account:
A) Significantly expand the amount of social housing available for sale, lease, or lease with option to purchase and, in the case of cooperatives, for the use and enjoyment of cooperative members.
B) Facilitate access to housing for the low, lower-middle and middle socio-economic sectors of the population.
C) Contribute to social integration and to the better use of infrastructure services already installed.
D) Improve financing and guarantee conditions for the acquisition, leasing or leasing with option to purchase of social interest housing.
E) Promote technological innovation in building construction.
Article 4. (Tax benefits).- The Executive Branch is authorized to grant the following benefits to the promoted projects and activities:
A) Exemption from taxes levied on income arising from declared activities or projects promoted. This exemption may include income or the tax itself.
B) Full deduction for the purposes of determining the income taxed by the Tax on Income from Economic Activities, of the acquisition cost of the properties in which the homes included in the declared promoted activities or projects are built, renovated, extended or recycled. Said cost may only be deducted to the extent necessary to obtain and retain the income included in the promoted activities and projects that have not been exonerated by virtue of the provisions of the previous paragraph.
C) Exemption from the Wealth Tax on properties whose construction, renovation, expansion or recycling has been declared promoted. These assets will be considered taxable assets for the purposes of calculating liabilities.
D) Exemption from Value Added Tax (VAT) on income derived from the sale, construction, renovation, expansion and recycling of housing. The Executive Branch is authorized to grant a credit for the tax included in the acquisition of goods and services intended to integrate the cost of such operations, as well as for the tax corresponding to the acquisitions made by social funds and housing cooperatives for their construction activities.
E) Exemption from the Property Transfer Tax, to the transferring party, to the acquiring party or to both, in the case of generating events linked to the first property transfer of real estate intended for housing whose acquisition, construction, renovation, expansion or recycling has been declared promoted.
F) Exemption from VAT applicable to guarantee services linked to the leasing and acquisition of properties intended for social interest housing.
G) Exemption from the Wealth Tax applicable to assets used to provide guarantee services referred to in the previous paragraph. These assets shall be considered taxed for the purposes of calculating liabilities.
Article 5. (Promotional declaration).- The Advisory Commission on Investments in Social Interest Housing (CAIVIS) is hereby created, which will advise the Executive Branch in order to grant the corresponding promotional declaration. The Executive Branch will regulate the composition, operation, terms and powers of said Commission.
The National Housing Agency will act as an advisory body to the Commission and must issue a mandatory opinion on all initiatives that promote the granting of tax exemptions. It will also assist the Commission in secretarial duties and in all other support tasks required of it in relation to the evaluation and monitoring of the projects and activities promoted.
Article 6. (Non-compliance).- In all cases, the Executive Branch shall require the guarantees it deems pertinent for the effective compliance by the beneficiaries of the obligations linked to the granting of tax benefits, without prejudice to the reassessment of taxes, fines and surcharges that may apply in the event of non-compliance. The regulations shall establish the areas of action of the National Housing Agency and the tax collection agencies in the tasks of monitoring compliance with the aforementioned obligations.
CHAPTER II
MORTGAGE LOAN GUARANTEE FUND
Article 7. (Creation).- A Mortgage Credit Guarantee Fund shall be created within the National Housing Agency, the purpose of which shall be to provide partial guarantees for the granting of mortgage loans to individuals for the acquisition of a social interest dwelling, provided that this is the sole dwelling of the subject of the loan.
Article 8. (Nature).- The Mortgage Credit Guarantee Fund shall be an independent asset, without legal personality, which shall be administered by the National Housing Agency (ANV), which shall exercise the powers of ownership without being the owner, to fulfill the duties assigned in this regulation and in Law No. 18.125, of April 27, 2007 and its amendments.
The assets of the Fund shall not be liable for the debts of the ANV.
Article 9. (Resources).- The Mortgage Loan Guarantee Fund shall be established with the following resources:
A) The value of the premiums received from creditor entities, as defined in article 10 of this law, as consideration for the granting of guarantees, in accordance with the system regulated by this law.
B) Contributions received from the National Housing and Urbanization Fund or other contributions previously approved by the National Housing Agency, as administrator of the Guarantee Fund.
C) The amounts recovered in accordance with Article 13 of this law and any other sum that the Mortgage Credit Guarantee Fund may receive as a result of the guarantee mechanism provided for in this law.
D) Donations, inheritances, legacies and other public and private contributions received.
Article 10. (Guarantee Mechanism).- The Mortgage Credit Guarantee Fund may guarantee mortgage loans granted by entities subject to the authority or control of the Central Bank of Uruguay (hereinafter, individually, "Creditor Entity" and collectively, "Creditor Entities"), in accordance with the requirements established in this law and those established in the regulations issued by the Executive Branch at the proposal of the National Housing Agency (ANV).
The ANV, acting as administrator of the Mortgage Credit Guarantee Fund, may accept or reject guarantee applications, depending on the conditions established by the regulations, especially the credit quality of the debtor or the valuation of guarantees.
Article 11. (Payment of the guarantee).- When the borrower fails to comply with his obligations, the Creditor Entity will communicate this fact to the National Housing Agency, which must make effective the payment of the guarantee, in accordance with the conditions established by the regulations.
Article 12. (Execution).- For the purposes of judicial execution of the mortgage loan, the Creditor Entity may resort to the simplified judicial execution mechanism for housing mortgage loans, established in Chapter III of Law No. 18.125, of April 27, 2007 and its amendments, without prejudice to the provisions of this law.
The Creditor Entity must notify the National Housing Agency (ANV) of the commencement of legal enforcement actions within five days of filing the claim.
The ANV, by virtue of having granted the guarantee, will be authorized to access, consult, appear, withdraw in confidence and be notified of any action in the judicial foreclosure proceedings initiated by the Creditor Entity, without any of these acts implying substitution of the creditor, validation of actions or conversion of the ANV into a party to said process. Likewise, the ANV will be authorized to acquire the property in the auction promoted by the Creditor Entity and, if it is the highest bidder, it will be exempt from depositing the deposit.
The ANV shall be automatically subrogated for the equivalent of what was paid under the guarantee it had provided.
Article 13. (Destination of recovered sums).- In the event of auction, the liquidation of the credit and delivery of the asset shall be governed by the provisions of article 388 of the General Code of Procedure, without prejudice to the provisions set forth below.
The sums resulting from the recovery of overdue debts, whose guarantees have already been cancelled by charging the Mortgage Credit Guarantee Fund, must be allocated in the following order to the payment of:
A) Judicial taxes.
B) The expenses and fees of the auctioneer involved.
C) Expenses and fees for services provided by custodians and judicial appraisers.
D) Professional fees, in accordance with the provisions of article 55 of Law No. 18.125, of April 27, 2007 and its amendments.
E) The unpaid balance of the single-home loan granted by the intervening Creditor Entity, including the relevant interest prorated to the percentage corresponding to each of the Creditor Entities, if there is more than one.
F) The amount paid by the Mortgage Credit Guarantee Fund plus the corresponding interest.
Article 14. (Credit Administration).- The administration of the credits covered by the guarantee system provided for in this law will be carried out at all times by the Creditor Entity that granted the guaranteed loan.
Without prejudice to the above, the National Housing Agency (ANV) shall have the right to request information and carry out checks on the guaranteed loans, having the right of unrestricted access to all information on the debtors. For these purposes, the Creditor Entities may not invoke professional secrecy to refuse to provide any type of information. The ANV, for its part, shall be obliged to use the information received only for internal purposes, and the total or partial disclosure of said information to other public or private agents is strictly prohibited. Violation of this prohibition shall entail the responsibilities provided for in article 25 of Decree-Law No. 15.322, of September 17, 1982.
Article 15. (Taxes).- The Mortgage Credit Guarantee Fund created by virtue of the provisions of this law shall be exempt from all taxes with the exception of special social security contributions. The National Housing Agency shall receive the same treatment for taxes that may apply to it in its capacity as administrator of the aforementioned Fund.
Transfers of real estate whose generating event originates in the execution of mortgage loans guaranteed by the aforementioned Fund are exempt from the Property Transfer Tax.
Article 16. (Actions of the National Housing Agency).- Add the following paragraph to article 11 of Law No. 18.125 of April 27, 2007:
“C) Manage the Mortgage Credit Guarantee Fund.”
Article 17. (Use of guarantee trusts).- When the Creditor Entities decide to guarantee loans for a single home through the creation of guarantee trusts, in accordance with Law No. 17.703, of October 27, 2003, the guarantee mechanism provided for by this law will be applied.
CHAPTER III
INCORPORATION INTO THE HORIZONTAL PROPERTY REGIME
Article 18. (Requirements).- Buildings constructed that meet the following requirements shall be considered governed by the regulations regarding horizontal property and their units may be subject to transfer of ownership or allocation with real rights on an individual basis:
A) That the construction permit for the building in question has been granted by the respective Municipality and that the horizontal subdivision project plan has been approved by the same Municipality, in accordance with which the constructions have been carried out and the separate ownership of the units will be attributed.
B) That the horizontal survey and division plan consistent with the project plan approved by the respective Intendancy has been registered in the National Cadastre Directorate and the registration and fiscal appraisal of the units indicated in said plan has been carried out.
C) That the building is in sufficient habitable conditions for the use to which each of the units and their common property are intended, according to the certification that will be presented to the financial institution that grants the mortgage loan with the guarantee of some housing unit emerging from the horizontality referred to in this article. Said certificate will be signed by the architect in charge of the work and by the surveyor and will record that:
1) The buildings correspond to the approved building permit.
2) They are within the limits established by the applicable regulations on horizontal property.
3) They fully comply with current municipal regulations.
4) There is no pending observation or administrative measure on them by the respective Intendancy.
5) The units as well as the common assets for exclusive and general use of the building are in accessible conditions, allowing said buildings to be used safely, autonomously and comfortably.
D) That the fire insurance provided for in article 20 of Law No. 10.751, of June 25, 1946, be contracted in the manner established by literal C) of article 5 of Decree-Law No. 14.261, of September 3, 1974, the corresponding premium being considered as a common expense.
E) That the Co-ownership Regulation be granted in which the reciprocal mortgage is established in accordance with the provisions of literal D) of article 5 and in article 6 of Decree-Law No. 14.261, of September 3, 1974.
F) That simultaneously with the granting of the aforementioned Regulation, the public or private Financial Institution referred to in the preceding literal C) subscribes to a mortgage loan in relation to at least one of the units that make up the divided building.
Article 19. (Final horizontality).- The horizontality arising from compliance with the requirements set forth in the previous article shall be definitive, and the provisions of the second paragraph of article 30 of Law No. 10.751 of June 25, 1946 shall not apply. All of this without prejudice to the powers of the respective Superintendency to supervise the work, grant final authorization and adopt the pertinent administrative measures, as well as the responsibilities of the intervening technicians, if applicable.
Differences in the configuration of the units and common assets produced by the process of implementation of the work, which are the subject of future measurements, will not require ratification of the instruments granted at the time, it being understood that the rights and obligations generated by these are extended to said differences.
Article 20. (Acquired horizontality).- Buildings constructed under the provisions of Law No. 10.751 of June 25, 1946, including those that have obtained horizontality under Chapter III of Decree-Law No. 14.261 of September 3, 1974 and Law No. 16.760 of July 16, 1996, that lack final authorization and regardless of the provisions of Article 35 of Law No. 18.308 of June 18, 2008, shall be considered to have definitive acquired horizontality, provided that the following requirements are met:
A) Those established in articles 5 and 6 of Decree-Law No. 14.261, of September 3, 1974.
B) That one or more units of the building have been occupied for a period of more than ten years, which will be accredited by a public or private document with a certain date.
The ten-year period shall be counted in all cases from the certain date of the aforementioned document.
Article 21. (Instrumental requirements).- In all acts and contracts relating to real estate governed by the horizontal property regime and included in this law, the instrumental requirements shall be adapted to the provisions of article 41 of Decree-Law No. 14.261, of September 3, 1974, as applicable.
Article 22. (Scope).- The rules of this Chapter do not affect or modify the current regime regarding horizontal property.
These may be applied to any building without the need for its units to constitute social interest housing.
CHAPTER IV
MISCELLANEOUS PROVISIONS
Article 23. (Amendment of article 18 of the Organic Charter of the Mortgage Bank of Uruguay).- The following paragraph shall be added to article 18 of the Organic Charter of the Mortgage Bank of Uruguay in the wording given by article 1 of Law No. 18.125, of April 27, 2007:
“J) Grant credits in national currency, indexed units or adjustable units, for the renovation or expansion of housing without mortgage guarantee to:
1) Natural persons.
2) Legal entities for housing their members.
These loans may only be granted if the regulations issued by the Mortgage Bank of Uruguay for their implementation are approved by the Executive Branch."
Article 24. (Repeal).- Article 46 of Law No. 5.343, of October 22, 1915, as amended by Article 1 of Decree-Law No. 15.100, of December 23, 1980, is hereby repealed.
Article 25. (Amendment of Decree-Law No. 14.219, of July 4, 1974).- From the effective date of this law, deposits in guarantee of leases provided for in Decree-Law No. 14.219, of July 4, 1974, will be made in Indexed Units.
Banks and financial intermediation cooperatives are authorized to receive this type of deposit, within the scope and under the conditions established in said legal regulation.
Lease security deposits will not accrue interest.
Article 26. (Exceptional regime).- For the alienation, transfer or creation of liens with respect to housing that, being of social interest, has the quality of economic, in accordance with the provisions of article 22 of Law No. 13.728, of December 17, 1968, and concordant ones, and those designated as basic evolutionary nuclei according to the provisions of article 26 of Law No. 13.728, of December 17, 1968, as amended by article 1 of Law No. 16.237, of January 2, 1992, the certificates provided for in articles 662 to 668 of Law No. 16.170, of December 28, 1990, shall be waived.
Article 27. (Amendment of article 5 of Decree-Law No. 14.261, of September 3, 1974).- The third paragraph of section A) of article 5 of Decree-Law No. 14.261, of September 3, 1974, shall be replaced by the following:
“These requirements will be accredited by an architect or engineer certification.”
Article 28. (Performance of the National Housing Agency in the trusts that are established).- When the National Housing Agency, in its capacity as trustee of assets from the restructuring of the Mortgage Bank of Uruguay, contributes to the establishment of a new trust whose main purpose is to begin or continue construction works on housing, it may occupy the position of trustor and trustee of the same.
Article 29.- Article 447 of Law No. 16.736 of January 5, 1996, as amended by Article 10 of Law No. 17.596 of December 13, 2002, shall be replaced by the following:
“ARTICLE 447.- Real estate awarded or sold by the Ministry of Housing, Territorial Planning and Environment or acquired with subsidies granted under the provisions of Chapter V of Law No. 13.728, of December 17, 1968, and its amendments, shall be encumbered for a term of twenty-five years with a real right in favor of the aforementioned Ministry for the amount equivalent to the assigned subsidy, which must be stated in the respective deed, without prejudice to the depreciation provided for in article 70 of the aforementioned law, as amended by article 341 of Law No. 17.930, of December 19, 2005. When the acquisition of a property with a housing subsidy granted by the Ministry of Housing, Territorial Planning and Environment has been complementarily financed with a mortgage loan granted to the purchaser by the Mortgage Bank of Uruguay (BHU), the National Housing Agency (ANV) or any financial intermediation institution, which must be recorded in the respective deed, the real right provided for in this section loses its rank in relation to the mortgage loans referred to.
In the event of the foreclosure of the property subject to said lien, the intervening Court, the BHU or the ANV must request from the Ministry of Housing, Territorial Planning and Environment the information regarding the amount of the adjusted and non-depreciated subsidy, based on the time elapsed. Said amount must be reimbursed to the Ministry of Housing, Territorial Planning and Environment once the mortgage loan referred to in the first paragraph has been satisfied, provided that it has been granted.
When the subsidy granted has represented 90% (ninety percent) or more of the corresponding price as it appears in the respective deed, the property will be unseizable as long as the period of inalienability established in the cited article 70 has not elapsed or the reimbursement of the non-depreciated subsidy has not occurred. This benefit will apply exclusively to the recipient of the direct housing subsidy or to his successors in title.
This provision will apply to all sales already made, as well as to those made in the future by the Ministry of Housing, Land Use Planning and the Environment, provided that the purchasers have received a subsidy.
Session Hall of the Senate, Montevideo, August 10, 2011.
DANILO ASTORI,
President.
Hugo Rodriguez Filippini,
Secretary.
MINISTRY OF INTERIOR
MINISTRY OF FOREIGN AFFAIRS
MINISTRY OF ECONOMY AND FINANCE
MINISTRY OF NATIONAL DEFENSE
Ministry of Education and Culture
MINISTRY OF TRANSPORT AND PUBLIC WORKS
Ministry of Industry, Energy and Mining
MINISTRY OF LABOUR AND SOCIAL SECURITY
MINISTRY OF PUBLIC HEALTH
MINISTRY OF LIVESTOCK, AGRICULTURE AND FISHERIES
MINISTRY OF TOURISM AND SPORTS
MINISTRY OF HOUSING, LAND USE PLANNING AND ENVIRONMENT
MINISTRY OF SOCIAL DEVELOPMENT
Montevideo, August 17, 2011.
Comply with, acknowledge receipt, communicate, publish and insert in the National Registry of Laws and Decrees, the Law declaring the improvement of the conditions of access to social interest housing to be of national interest.
JOSE MUJICA.
EDUARDO BONOMI.
LUIS ALMAGRO.
FERNANDO LORENZO.
ELEUTERIO FERNANDEZ HUIDOBRO.
RICARDO EHRLICH.
HENRY PAINTED.
ROBERTO KREIMERMAN.
EDUARDO BRENTA.
JORGE VENEGAS.
I WILL TABARE WAR.
HECTOR LESCANO.
GRACIELA MUSLERA.
DANIEL OLESKER.http://www.parlamento.gub.uy/leyes/AccesoTextoLey.asp?Ley=18795&Anchor=
